The government has assured that adequate sugar stocks are available to meet domestic demand, despite lower-than-estimated production. The Ministry of Consumer Affairs, Food and Public Distribution said it is closely monitoring the recent rise in sugar prices and has taken measures to ensure sufficient availability and stable prices.
The Ministry said attributing the price rise to diversion of sugar for ethanol production is not correct. It said the share of sugar diverted for ethanol declined from around 12 per cent in 2022-23 to around nine per cent in 2025-26. It said, nearly three-fourths of ethanol produced in the country now comes from grains, particularly maize.
The Ministry said the price rise is due to a combination of lower domestic production, increased festive-season demand, weather-related crop damage, tightening global supplies, and speculation and hoarding by some sections of the industry.
